That yield. Yield does go thats yield. Yield goes higher. Crude oil is the key to this market. Geez. I say that before my friend to the right of me says it. Wow. Were above 50, jim. Thats a move. Its for real. And that seems to be having a broad impact as you might expect on so many markets which we will get to as we start the road map this morning. Glencore higher in the premarket. It plans to cut production, but alcoa lower on weaker than expected results. Tesla gets a downgrade while elon musk lobs a put down at apple. Oh, yeah. A bit of a smackdown. And gap shares are down almost 8 in the early trading. That on declining samestore sales. Well, oil prices as we said, extending gains. Crude on track to post the largest weekly increase percentage wise in six years. Shares of glencore also up. That after the Company Announced plans to cut annual zinc production by a third. And alcoas falling after it posted weaker than expected quarterly results, in part due to lower aluminum prices. Last night on mad money, jim was told alcoas outlook has optimism. Our experts press injected a deficit for next year in aluminum. Then we have seen the stock price, whats in warehouses coming down to levels that are below the levels that we have seen before. I think there could be a lot of optimism in there. How much does alcoa predict what is going on . If alcoa is splitting into two different part, and then this upstream business, basical basically aluminum and balcite. Claus was saying this Aluminum Company that everyone seems to hate today, if it were separate, it would be like freeport, up 30 , 40 , if glencore is cutting back zinc. Were hearing rationalization to valet. Bhp and rio have had big weeks. He said this would be the pure commodity play would like. He said it is a welltimed split. Pure play aluminum we would love it because the quarter wasnt good. People think this is the trough, david. We hear trough in so many Different Minerals because the rationalization is coming in with glencore finally blinking in a zinc market thats so horrendous. If they blink you mentioned glencore. They announced a half 500,000 ton reduction of contained zi e metals mine production, main rain to preserve the reserves in the ground at a time of low zinc and lead prices, which does not correctly value the scarce nature of the resources. Glencore, you can see whats happened with that stock. Thats the adr. When you look at what has happened to it, it is up sharply over the last couple of weeks as they start to fight back after that 29 down day a week ago friday. This is important. Last monday. Two weekses a ago, you go of water cooler talk. I cant buy stocks because of this glencore. I cant buy stocks. Oil is going up. The real, which is one of the worst performing currencies, you and i should go to brazil and buy a couple mansions, the reale is strong. Relative strength in over a week or so . Im talking about two weeks ago you could only buy onesixth pack of pbr if you had a share of pbr, now you can buy two six packs. Thats facetious. The pbr is the same as my favorite beer pabst blue ribbon. People say the dollar is peaking worldwide against everything. You are hearing that. When cfos talk, one thing people will be saying is the dollar that peaked, our currency fx is not as big. Look at pepsico. We did not talk about the fact that they are saying the dollar that peaked. They have russia. The ruble has been good. Ruble strength is up since oil is up. A lot of this goes back to oil. Everything goes back to oil. Oil was the worst commodity in the third quarter. I was dealing with Oil Executives coming into town. The oil story theyre talking is not we only had a 5 decline in production in our country, theyre talking about a 20 to 30 production for next year. So is 50 here to stay . Nobody will be talking about 30 bucks anymore . In spring when the oil had the run up to the 60s, Companies Got faked up. Then it got brought down on the goldman call on the 30s. Theres been a lot of shut in. A lot of equipment taken out. For some time you were saying its not cut as much as you would have anticipated. In the last four weeks, the cutbacks have been amazing. You dont want to be in the Oil Pipeline Business either. Nat Gas Production is soaring. You dont want to be in any of those businesses. Nat gas you do because of the share take. All right. Coal. Williams ships a lot of nat gas. Not wanted on that stock. Now you do. Now you do. Over the last week i have wanted to. You have the deal i have done a massive amount of work with my friends at rbn about the Energy Transfer and williams, they will own the natural gas business. They will export 5 to 8 of our natural gas in this country. They need all the pipe they can get. But the oil pipes are running 50 full. The natural gas pipes are r running 100 full. If youre in the oil business, not so hot. If youre in the nat gas business, demand is everywhere. Were talking now about those that transport natural gas but also that produce is . This is coal. Where are we on this . Natural gas at a 15year low. Thank you. 2. 49. David, the utilities, coal, forget it. Its not going to be 2020. Its 2018. Coal is going out of production. If Hillary Clinton is elected, all the companies that think theyll be okay, the utilities, forget about it. Theyre going natural gas and renewab renewables. You still need baseline, baseline is coal and natural gas. General electric very levered to the switch to natural gas. General electric has had one of its best weeks in years. Number one performing industrial in this country. Ge closes yesterday at 28. 03. The secret started in the mid 24s. Can i tell that you nelson peltz and jieff immelt, its nelson peltz influences jeff immelt to buy more stock back. Thats why ge will be a good stock to own. Dont forget, 19 of this company is oil in china. Im not convinced yet that i like oil as a bottoming story. I like china as a bottoming story. Therefore people are playing ge as a way to bottom. Ge had another great week. That was the week think announced the decision to divest most assets of ge capital. It did not sustain. It did not sustain because of the price of oil and the lowdown in china you think its different this time . I think the Balance Sheet is different. I think its underlevered company and it wont be circumstances, siffy, it can buy back more stock than people think. Ge, i hope it comes in so people can get in. What a week weve had. This is the same week that Ellen Kullman was fired. It happened this week. Exactly. Its been an amazing week and its not over because tonight tonight, 9 45. We can watch the mets beat the dodgers. Jake that, jane wells. Lets talk about another west coast company. Tesla receiving another downgrade at barclays. They go to underweight from equal weight. The firm saying they see many challenges ahead for the electric carmaker especially in regard to the musk has taken a shot at apple when saying apple is hiring teslas engineers. He said they have hired people we have fired. We call apple the tesla graveyard. If you dont make it at tesla, you go work at apple. Im not kidding. The tesla graveyard. Getting crowded. You always talked about it being a cult stock. Barclays saying they dont know if they can ramp up the output. Did you see that piece. Reality check on margins, future stream and delivery. Model x yeah, the x launch reinforces three risks. But the wrong flow of data points. This piece is far more negative than people realize because theyre really talking about the production is going to be much lower. Big production miss. I dont know, david. Its a cult stock. Leave it like that. It is. Do you believe apple is a graveyard for tesla employees . It i they may have removed the head stones, but they didnt remove the bodies. I think that if anything, this is a poeltltergeist for apple. Everything growth has been horrendo horrendous. Look at google. Cant apple fall into its trading at 11 times earnings, but the source of funds for csx and union pacific, not for tesla. Go figure. Coal, coal is not coming back. Coal is not coming back. Coal is a bad story. Were talking about some positives here, all of this could come to a screeching halt when we talk about congress. Republican congressional leaders set to meet this morning to discuss the selection of a new speaker of the house after Majority Leader Kevin Mccarthy stunned the gop by dropping out of the race. Ohio congressman john boehner who is the speaker announced plans to retire at the end of this month. He says he will stay on as speaker until a replacement is found. Why is all of this important . Jim, i hate to say that on november 5th we have to have the debt ceiling raised. And then, by the way, in december were talking about the budget. And we could be facing an impasse again. Its hard to imagine. If boehner keeps the job through the end of the year, that seems a positive. Thats how i was looking at it, until you put the negative spin on it. But the turmoil in the fact that we dont have a speaker yet, mccarthy is not there. The idea that something could be more conservative than he is worries those who belief a shutdown is more likely. Shutdown does hurt earnings. I can show you shutdown would be bad. You have to scale back the international. Theres a lot travel. A lot has to be scaled back. United reported a good number. Would sell the airlines on a shutdown. We know that. So, no, we have to watch it again. Remember, it does get built in. By the time you get to the shutdown, the second day you have to buy the stocks. Daryl issa was a member on squawk box this morning. Lets hear what he said. Im considering whether or not to put my name in the hat. To be honest, i probably am better suited to be the republican leader or committee chairman. But thats not a question of suiting. At this point or even experience. Its a question of can we come together . Come together, we should get that button made . That again . It work well. Hey. Was what was it . Rise above . Rise above. My president bloomberg 2016 pin. I felt like wearing that last night. Do you . Second day in a row i listened to mayor bloomberg. I know. I saw your tweets. I thought i was day behind. Im talking him. I love to listen to him. This is not in the market. A shutdown is not in the market. Were oblivious to it in the market. So does endlessly buying the industrials. Fed lockhart, rate hike still likely. Where is bullard, hes sanguine. Those guys are what i call outlyers, but they love microphones. They walk a mile for a camera, those guys. With the 20pound pack i would be shaking. I would be shaking. They could come down and get me. Im right down here. Post nine. I was very peaceful. I was very sanguine about the whole interaction. I dont know. The wife didnt like the way i got a beat down. Really . Yeah, she want mess s me to her the wife already. We have two empty seats. The guy went to titan in 2007. Bullard can come sit next to us. Coming up, bad news on the gap, at least if you own the stock. Also ahead, an exclusive interview with new york fed president bill dudley as the Interest Rate debate rages on. Lets look at futures. We are back with squawk on the street after this quick break. [announcer] right now at sleep train, get up to 48 months interestfree financing on tempurpedic. Save 300 on beautyrest and posturepedic. Or choose 300 in free gifts with stearns foster. The triple choice sale ends soon at sleep train. Gap shares are falling in the premarket. The retailer reporting comps down 1 in september, hurt by a 10 decline at banana republic. Comps at old navy up 4 . But the head of that division is leaving to become the ceo of ralph lauren. That will take place next month. Gap got crushed when that was announced. Did you see what art peck said . No. He said that he blamed poor fitting womens clothing. Poor fitting. Not the women. Disappointing womens product. Banana republic, it doesnt fit well. Its not flattering. Do you want to have your wife shop at a place where the ceo says dont buy our clothes, theyre not flattering. Thats when that fella, who ran Abercrombie Fitch didnt wasnt any people overweight go to his stores. Jeffries. These are things you dont say. My clothes are illfitting. The stock, which frankly was in the mid 40s in the spring or close to the spring, is obviously down sharply from there. We talk a lot about the mixed picture in retail. Yes. You cannot paint it with one brush. You cannot also invest across the sector and expect the same results. Well this is yet another indication of that. Elle brands, those numbers were extraordinary. Costco, 8 comp. A lot of good little chatter about retail. Jcpenney, ralph lauren, since the Management Change up 20 points. Then the illfitting guy. Youre giving positives, but there are plenty of negatives. Its not just gap. No, its a mixed picture. I dont think cokohls is readyo move. I think nordstrom is. I dont think you can say illfitting clothes, and say the clothes are illfitting, down 40 , ill go look bad. What do you do. Fire some people. Theres ways you can turn it around. I dont want to fall into the stock by any means. By the way i got that. Ascena shows you what happens if you stick around long enough. David jaffey comes on money all the time, hasnt been doing well, then golden gate bridges the gap there. You got them all. 9 stake in Ascena Retail group. Golden gate capital is what jim is referring to they own the dress barn, lane bryant. Yeah. They own maurice. Ann taylor. I think that ascena is very undervalued, they made a series of acquisitions that have not worked out. They also had style issues with justice, a division of theirs. Not the department of justice, but it sells as many clothes as the department of justice. They need a shakeup there. David jaffey has tried but youre not a midnight toeker, are you . Excuse me . You said youre maurice. No this is not the steve miller band. This is the david jaffey band. Got it. Were going to have cramers mad dash coming up next as we count down to the opening bell on this friday. Its been quite a week. Were not done yet. By the way, joining us is new york fed president , bill dudley, he speaks to steve liesman, thats an exclusive interview coming up shortly. Were right back on squawk on the street. [engine revving] a 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable, professional. Would you trust me as your Financial Advisor . I would. I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro, you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. Some people call me the space cowboy some call me the gangster of love some people call me maurice there it is. All right. Maurice numbers, samestore sale numbers not that good. Steve miller made up the word pomptous. Still not in the dictionary. We have a mad dash. Where are we headed . One of the worst performing retailers, talking about walmart. Trying to make a change. Yields 2. 93. Has a little protection. Changed at the top. Cfo, what does that mean . Cfo, an important position in what is one of the Largest Companies in the world. I can remember a few of them through the year the. They are very important and help to drive sort of the financial direction of the company. That said, Doug Mcmillan obviously firmly in control as he tries to wrestle this thing to the ground and bring significant change. Well see. Its been tough. 59yearold mr. Holly stepping away at the end of the year for a younger gentleman who will be taking over as cfo. Walmart challenged like amazon. Amazon may dispute the numbers that came out from anchannel advisory. In other words, that amazon will get a boost. I regard amazon as the real enemy of walmart. Walmart likes to order and pick up. I dont think the order and pick up has the attraction. We want to order and have it come to our house. Yeah. Sometime now in the same day. I had that happen. I got sameday. I got sameday household, toiletries. How did that happen . More coming up. patrick 1 whats it like to be the boss of you . patrick 2 pretty great. patrick 1 how about a 10 raise . patrick 2 how about 20 . patrick 1 how about done . patrick 2 thats the kind of control i like. And thats what they give me at national car rental. I can choose any car in the aisle i want without having to ask anyone. Who better to be the boss of you. patrick 1 than me. I mean, you. Us. vo go national. Go like a pro. He can not see through doors. His speed, anything but superhuman. But when it comes to health care options, george found helpful information and resources at aarphealth. Com this makes him feel unstoppable. Well, almost unstoppable. Discover real possibilities at aarphealth. Com today and tomorrow take on the world. All right. There it is. The applause building for this friday as we close out the week. We have the opening bell about to ring on the new york stock exchange. The realtime exchange about to compose itself. Hopefully end up with a few more green. At the big board, by the way, Kennedy Wilson holdings, a Real Estate Investment and services company. At the nasdaq, it was cpi card group. Thats a provider of credit cards and debit cards celebrating its ipo. They do the chip on the card. They went they were going to price between 16 and 18 in september. Then they lowered it to 12 or 13 on wednesday. Then it was delayed. Then they priced last night at 10. Holy cow. On the eve of first data and albertsons, 10. Wow. Had to get the deal done that badly. Had to get it done. The market is so overbought. Money is plowing into the boeings of the world, but they do not want to touch this new merchandise. First data is probably the thing to watch. A large offering, of course. Having been an enormous lbo from quite some time back. Its aged. Its time now for it to be public again. Kkr behind that. They brought in a new ceo. What are you hearing. Well see. This is not the greatest ipo market. This is the strongest for the s p this year. The worst ipo market of the year. What is that saying . People want value. That means if youre going to do value, lower the price of some of these offering. Earlier this week, a company i liked very much. Against emc, but its a growth stock. People, david if you looked between 215 and 230 the futures went up big. Once the futures were up to 230, sellers we